2014 Car Affordability Study

Median-income families in only one major city can afford the average price Americans are paying for new cars and trucks these days.

When calculating how much a household can afford to spend on a car or light truck, we considered three key factors that are commonly referred to as the “20/4/10” rule. That is: a down payment of at least 20%; auto financing lasting no longer than four years; and principal, interest and insurance not exceeding 10% of a household’s gross income.

Here is the affordable purchase price for median-income households in each city and how much higher or lower that is from the average cost of a new car or truck — $32,086 in 2013, according to Kelley Blue Book.